First time poster … long time lurker …
TLDR: In my late 20s, been in IR ~5 years. Is it crazy for me to switch to the sell side?
…
Extended version: I’m in my late 20s, currently working in IR at a F500 tech company. We touch a lot of different vectors of the tech ecosystem (think major OEMs and Software players). I’ve been in the role for the past ~5 years now and have had tons of exposure to management since day one (actually at the point where I’m relied on internally to provide opinions/advice the management). Like most IR shops, we’re a small team but I’m given a lot of autonomy to really make the role my own. I’ve pretty much curated it to be like an acting as an internal sell side research/strategy based role (e.g., do lots a industry research, comps/benchmarking, primers/deep dives over other verticals and companies in the tech landscape, TAM analysis, while script writing for management and engaging with our analyst coverage and buy side investors).
I recently had an offer to flip over to the sell side for an associate opportunity on a tech team.
Despite the sell side role feeling like it would be a step or two below my current IR position, the pay is slightly better (10-15% higher). That’s really just the price you pay for working more in corp finance vs at a bank. And I think more near to mid term could be more lucrative.
Am I crazy for wanting to make the switch? I know the WLB would be a bit more rough. But nothing I don’t think I would have an issue with (already work pretty terrible hours pre and post quarter). Really just trying to layout the long term career moves hear and what would benefit me the most.
Being in IR on a longer term view I know that it can open doors to other areas of finance/strategy (e.g., lateral over to a corp strat role, continue to working the way up in IR ladder/ lead IR at pre-IPO company, pivoting over to other less exciting corp finance roles [not a huge fan of fp&a] but could later lead to CFO opportunities [rare but seen it done]).
While working in sell side can open opportunities to working up to the point where you have your own coverage, pivot over to the buy side (LO/HF), move back to IR, take a consulting role, move over to corp strategy.
Net/net: I feel torn and I know a big part of the sell side role depends on the analyst I’d be working under. I’ve pretty much always thought about joining the sell side since early in my career and really haven’t explored moving over until more recently. My IR experience while at times can feel administrative I’ve had incredible mgmt exposure early in my career and been put on some very stimulating special assignments in my role.
The sell side is a whole different ballgame from IR. Thats why comp is higher. If you’re used to working a 9-5 and are hesitant about the commitment it’s probably not for you. There’s a reason IR is a semi retirement job for a lot of former analysts.
What are your hours in IR pre earnings and outside of earnings?
ER can vary but earnings nights can go until 1-2am+ depending on the analyst
Frankly the decision will come from your internal motives and not what people say here. If your hours are already bad then chances are they'll get worse being on the SS. If you want, you could look at changing internally to something with less terrible hours while still utilizing your experience being on the IR team. Going from IR to SS is usually not the move since people usually do the opposite for a number of reasons. My analyst and I stay till 1am usually on earnings and 8-9pm on non-earnings. Why? Because that's just how he works, nothing I do will change that. So look at your options carefully.
Completely get that. And they vary drastically, typically 60 hours (7a - 7p) most weeks when we’re outside of the earning cycle. During the earnings cycle 80-90 hours is pretty normal during the week (with additional work most weekends it could skew 90-100 hours). But when it’s quite … it’s quite and those weeks are the normal 40-50 hours.
I spend about 40% of my time reading and summarizing research/industry news/peer earnings results, 40% modeling, and the remaining 20% either talking to investors or doing ad hoc projects.
Jesus dude, your job sounds miserable. Forget about going to the SS, i would just jump ship to another IR vertical in your sector. This job is clearly exploiting you without the proper pay. You should be making IB money with those hours. Definitely find something that’s more calm, I guarantee you’ll burn out in research if you aren’t already from this job.
What time do you usually get in the office?
Depends, usually 7:30-8am. Never later than 8 unless we were in the office past 1-2am from the night before.
This move doesn't really make sense because most people use ER a stepping-stone to IR as an exit given the comp isn't too far off but the WLB is still better and frankly the role is more interesting. This is NOT like the relationship between IB and Corp Dev because the comp differential between the two is much larger and this is why you can sometimes see people switching from corp dev to IB.
However, I will say the hours you describe in your above comment seem way out of the norm and if anything you may be getting underpaid for the work you're putting in or need some juniors working under you. Can you share your title (i.e. Manager or Director) and total comp? That would be helpful in seeing where you should be because right now it seems your best move (especially if you enjoy the work in IR) is to stay put and find another IR role and potentially even get a title/comp boost with better WLB.
Appreciate the remarks.
I’m definitely not unaware that I’ve been getting waxed with the hours. Company/team plus industry dynamics have played a pretty big factor in all of it.
I’m at a manager level.
Comp: 130k base + 10% bonus + 10% stock comp (which of course has the vesting period you have to deal with). So all in about 156k.
Yea you should absolutely gtfo of your current IR job
I know you don’t have previous SS experience, but still shouldn’t your comp be much higher at this point with 5 YOE? Kind of surprising to me. The reason I mention this is I was looking to make a move myself from the SS to IR and if this is the compensation structure even after 5 years in the seat, it makes me second guess looking to join. Any idea if it’s just your shop behind market or something else here?
I think IR with no path to CFO is kind of a dead-end role, which may be fine for someone at end of career. But in your 20s, the level of intellectual challenge, total comp, and career potential will be significantly enhanced in SS ER vs IR.
I was surprised by the initial responses suggesting both are similar. It’s not close in my mind.
How so a dead end? I had thought most of ER topped out in the ~$400K all-in range regardless of how many YOE (correct me if wrong). Believe total comp in IR tops out at a similar level with the added bonus of a better WLB.
Or were you referring more to exit opps rather than total comp? I would think IR lends itself to many other areas of the business like strategy, treasury, corp debt, etc whereas if you stay in SS research for very long that’s it.
Velit sit ullam nam temporibus voluptas. Neque qui voluptatem iusto et eaque. Sunt amet vero autem cupiditate maiores.
Aut vel nam maxime atque autem. Nostrum itaque quaerat veniam inventore consequatur. Rem dolores ut fuga culpa ea. Et vero repellendus et et officiis est similique.
Itaque explicabo quidem possimus voluptas recusandae. Non aut sit odio tempora. Aspernatur qui nobis laboriosam iure soluta voluptatem.
Consectetur mollitia commodi sit pariatur molestiae voluptas sapiente. Eos soluta qui dolor velit distinctio aperiam eos. Amet unde quia accusamus eveniet rerum expedita nemo.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...